Downing Healthcare EIS

The Downing Healthcare EIS is an EIS Knowledge Intensive Fund, investing in a minimum of five healthcare and life sciences companies.

Your capital is at risk and you may not get back the full amount you invested. EIS investments are long term and high risk. Tax reliefs are subject to change and depend on personal circumstances. If you're unsure about your tax status you should seek advice from a financial adviser. Please read full details of the risks here.

Key features

  • Closing date: This fund closes on 30 September 2021.
  • Sector focus: Our healthcare ventures portfolio and market thesis taps into many of the trends that are being accelerated by Covid-19. These include diagnostics being pushed out to the point of care through innovations in hardware and artificial intelligence (AI), as well as personalised medicine shaped by genomics, cell therapies and digital health. Example investments include: Touchlight, Invizius and Arecor.
  • Healthcare expertise: We have a dedicated team that focus on healthcare and life sciences investing, led by Dr Will Brooks, who has more than 30 years’ experience in the sector, and more than 18 years in venture capital. Dr Brooks spent 10 years at Quest for Growth, a large pan-European healthcare fund, where his fund delivered a return of 3.2x with an IRR of 32%.*
  • Investment allocation: We aim to allocate your money across a minimum of five companies across the healthcare and life sciences sector. Unlike a single company EIS, having a spread of companies in different subsectors can help mitigate the effect of under-performance or failure by any one company.
  • Sourcing opportunities: Through the experience of the team, Downing’s venture partners and our academic/subject matter expert network, we have formed deep connections within the global venture capital community, which helps us to identify compelling investment opportunities and partner with leading financial and strategic investors.
  • Minimum investment: £5,000.
  • Tax relief: This is an EIS Knowledge Intensive Fund providing 30% income tax relief in 2020/21 and 2021/22 tax years (subject to carry back and EIS rules). We are targeting issuing the EIS5 tax certificate within 12 months of fund close (subject to deployment and HMRC).

*Source: Quest for Growth

What do I need to know before investing?

  • Where is my money invested?

    With its world-leading research institutes, often fronted by the so-called “Golden Triangle” of Oxford/Cambridge/London and amply demonstrated by the development of the Oxford/AstraZeneca Covid-19 vaccine, the UK already has in place a leading ecosystem to foster innovation within healthcare and life sciences. We believe that, with further funding, the UK can continue to cement its place as a leading global healthcare and life sciences hub.

    Our aim is to invest your money in a minimum of five companies. As these companies scale-up we can use funding from other products, such as Downing VCTs, to provide follow-up finance to help boost future growth.

  • What are the risks?

    Investing in an EIS is for the long term, high risk and not suitable for everyone, so we recommend seeking financial advice before investing. As with all investments, the Downing Healthcare EIS has risks that you should be aware of and comfortable with before you invest.

    • The value of your EIS investment can go up and down so your capital is at risk.
    • EIS companies can lose their qualifying status which can affect your tax reliefs.
    • EIS tax benefits are not guaranteed, are subject to change and apply only if you hold your shares for a minimum of three years.
    • EIS qualifying businesses are at an early stage in their development and are therefore high risk. It can be hard to sell your EIS shares so you should be prepared to hold them for four - eight years.
    • Your Healthcare EIS portfolio will consist of a minimum of five companies and is focused on the healthcare and life sciences sector so there is relatively limited diversification.
    • The past performance of an EIS is not a reliable indicator of future results.

    Please note this is only a brief overview of the risks involved with investing in an EIS fund. Please read full details of all the risks here before investing.

  • What are the charges?

    Charges paid by the investor will reduce the amount of EIS income tax relief you can claim. Charges payable by the company can reduce the value of your portfolio. VAT will be charged as applicable.

    Initial charge
    via adviser
    1%This is based on the amount you invest and is an upfront charge to the investor.
    Initial charge
    execution-only basis
    3%This is based on the amount you invest and is an upfront charge to the investor. 2% is usually paid to your intermediary, unless otherwise indicated on your application form.
    Annual charge
    via adviser
    2% p.a. +VATThe first two years of the annual charge is taken up front from the investor, with any subsequent fees accrued and taken from exit proceeds. This charge is for the costs of managing the Downing Healthcare EIS (including custodian and nominee fees, bank charges and reporting to investors).
    Annual charge
    execution-only basis
    2.5% p.a. + VATThe first two years of the annual charge is taken up front from the investor, with any subsequent fees accrued and taken from exit proceeds. 0.5% is usually paid to your intermediary for the first four years unless otherwise indicated on your application form. This charge is for the costs of managing the Downing Healthcare EIS (including custodian and nominee fees, bank charges and reporting to investors).
    Performance fee20% + VATBased on the returns above £1.00 for each £1.00 invested. Payable only when you receive cash proceeds equal to the total you invested in the EIS companies.
    Arrangement feeup to 3%This is based on the amount available for investment into EIS companies and is charged on completion of an investment to each EIS company.
  • What happens once I’ve invested?

    We send you an acknowledgement letter, typically within seven business days of receiving your application. 

    We aim to invest funds into EIS-qualifying knowledge intensive companies within 6 to 12 months of the fund closing. 

    Once we have invested more than 90% of the funds, we will apply to HMRC for an EIS5 certificate (to claim 30% income tax relief), which we will send to you as soon as it is received. Unlike an unapproved fund, you will not receive any EIS3 certificates for your investments and will submit your EIS5 to HMRC if required. 

    Every six months, we'll send you a valuation statement

    Along with your valuation, we'll provide half-yearly reports with details of how each portfolio company is performing. These reports will cover the six-month periods to 30 June and 31 December. 

  • When can I exit my EIS investment?

    Exit opportunities always depend on the growth of the business and current market conditions

    We aim to give you the opportunity to exit between four and eight years from the date your shares were originally acquired, but there are no guarantees. 

    It’s important to understand that EIS funds are long-term investments and, for the majority of our portfolio companies, the investment lifetime is likely to be closer to eight years. 

    Exit opportunities arise mainly when our portfolio companies are acquired by other businesses looking to expand their operations, although some exit through market flotation

Essential reading

It's really important that you read these key documents, paying particular attention to the risks before you decide to invest. We recommend you seek financial advice before investing.
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Brochure
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Key Information Document
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Terms & conditions
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Suitability questionnaire

How to invest

The first step is to read the Key Information Document (KID), terms & conditions and brochure. When you’re ready to invest, complete the application form below. Send the completed application to us, making sure you've included the required forms of identification.

We're here to help

If you are a financial adviser, or discretionary fund manager please call us on 020 7630 3319 or email us at sales@downing.co.uk.

If you are a private investor you can speak to Downing LLP's investor relationship team on 020 3828 0975 or email customer@downing.co.uk.